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Treasury Secretary Scott Bessent says that he is not busy giving the Fed Marching orders, but his opinion that a neutral interest rate would be 150 basic points below the current level, has fed speculation on how quickly and how far can be reduced.
“I didn’t tell the Fed what to do. What I said was that to achieve a neutral rate on interest, that would be a cut of about 150 basic points. I did not argue that they would get there,” he clarified on “mornings with Mary,” Thursday.
“The other thing I said was perhaps because they had bad BLS data in June and July, perhaps, perhaps, a 50 -base point was justified in September,” he continued.
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Treasury Secretary Scott Bessent speaks to reporters outside the West Wing after a television interview on the North Lawn of the White House on March 13, 2025 in Washington, DC. (Andrew Harnik / Getty images)
The comments from Bessent came in response to Strategy chairman and CEO Jason Trennnert, who previously pointed to the “public” nature of the trump government’s attempts to influence the Federal Reserve, a shift that he said will reflect the era of the social media, maybe many things should be. “
Bessent further suggested that the FED could start with a smaller, 25 basic reduction before he accelerated, and told Maria Bartiromo that the agency might take a “crawl, walk, run” approach to change.
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Federal Reserve-President Jerome Powell testifies to the Senate Committee for Banking, Housing and Urban Affairs during a hearing to “investigate the half-yearly monetary policy report at the congress” on Captiol Hill on 25 June 2025 in Washington, DC (Kent Nishimura / Getty Images / Getty images)
“I can tell you that, based on the 50 -based point in September 2024, just before the elections, that the conditions are now a bit more favorable for a cut,” he shared.
“But again, I believe there is room, if someone believes in the neutral speed and where it is, there is room for a series of speed reductions … I don’t ask for it. I didn’t call it, I just said that a model of a neutral percentage is about 150 basic points lower.”
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President Donald Trump discusses the Federal Reserve policy in the Kennedy Center in Washington, DC
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